Production in Myanmar is carried out through Teijn frontier co., ltd. (hereafter referred to as Company A).

We discover the factory that received the order from Company A had been outsourced in violation of the rules...

Regarding this matter, our company will provide guidance to Company A.

And we will instruct Company A to provide guidance to their factory to be aware that they can’t subcontract without our approval.

Regarding specific measures, we will report as soon as we receive a response from Company A.

And we instructed Company A to provide guidance to their factory to re-aware that they can’t subcontract without our approval.

In addition, a memorandum of understanding was exchanged between Company A and the factory that received orders from Company A which says if work is to be subcontracted, the factory must report and approval to Company A before manufacturing.

The above measures will be taken to prevent recurrence.

[The full response is attached]